Why Use an Insurance Broker?

What Is an Insurance Broker?

An insurance broker is a regulated intermediary who arranges insurance on behalf of clients. Unlike an insurance agent — who represents a specific insurer — a broker acts for the client and has a duty to find suitable cover from the wider market. In the UK, all insurance brokers must be authorised by the Financial Conduct Authority (FCA), which means they are subject to strict rules on conduct, competence, and treating customers fairly.

The broker's role goes beyond simply finding a policy. A good broker will assess your needs, explain the options available, recommend appropriate cover, and support you through the claims process if things go wrong. This advisory relationship is the fundamental difference between using a broker and buying insurance directly.

Broker vs Direct Insurer vs Comparison Site

There are three main ways to buy insurance in the UK, each with different characteristics:

Direct insurers sell their own products directly to customers, without an intermediary. You can only access that one insurer's products, and the advice you receive is limited to their range. Direct insurers can be competitive on price for straightforward risks, but they may not be the right fit for more complex needs.

Comparison sites allow you to compare prices from multiple insurers based on the information you provide. They are useful for simple, standardised products (such as car insurance), but they have significant limitations for commercial insurance. Comparison sites do not provide advice, and the cheapest option may not provide the cover you actually need.

Insurance brokers have access to a panel of insurers and can search the market on your behalf. They provide advice on what cover you need, explain the differences between policies, and negotiate terms with insurers. For commercial insurance, where risks are more complex and policies less standardised, a broker adds significant value.

Market Access and Choice

One of the primary benefits of using a broker is access to a wider market. Brokers work with multiple insurers — including specialist markets that do not sell directly to the public. This means they can:

• Access specialist insurers that only deal through brokers
• Obtain quotes from multiple insurers and compare them on your behalf
• Negotiate terms, excesses, and conditions with underwriters
• Find cover for non-standard or complex risks that direct insurers may decline
• Access Lloyd's of London syndicates and specialist markets

For commercial insurance, this market access is particularly valuable. Many specialist commercial insurers — particularly those covering property portfolios, fleet operations, and niche trades — only work through brokers.

Professional Advice and Expertise

Insurance policies are legal contracts, and the details matter. A broker's expertise helps ensure you have the right cover in place:

• Assessing your risks and identifying the covers you need
• Explaining policy terms, conditions, and exclusions in plain language
• Ensuring sums insured are adequate to avoid underinsurance
• Advising on the appropriate level of liability cover
• Identifying gaps in your current cover
• Keeping you informed of changes in the market or regulation that affect your insurance

This advice is particularly important for businesses, where the insurance requirements can be complex and the consequences of getting it wrong can be significant. A broker who understands your industry can anticipate risks that you might not have considered.

Claims Support and Advocacy

The true value of a broker is often most apparent when you need to make a claim. While direct insurers and comparison sites leave you to deal with the claims process on your own, a broker acts as your advocate:

• Helping you prepare and submit your claim correctly
• Liaising with the insurer and loss adjusters on your behalf
• Challenging unfair claim decisions or inadequate settlements
• Providing guidance on what documentation and evidence is needed
• Keeping you informed of progress throughout the process
• Ensuring the claim is settled fairly and promptly

For complex or high-value claims, having a broker on your side can make a material difference to the outcome. Brokers understand how insurers operate, what evidence is needed, and how to present a claim in the most effective way.

FCA Regulation and Consumer Protection

All insurance brokers in the UK must be authorised by the Financial Conduct Authority (FCA). This provides important protections for clients:

• Brokers must act honestly, fairly, and professionally in the client's best interests
• They must have appropriate qualifications and competence
• Client money must be held in designated trust accounts
• Brokers must have <Link href="/liability/professional-indemnity-insurance" className="text-secondary hover:text-secondary/80 underline underline-offset-2">professional indemnity</Link> insurance
• Clients have access to the Financial Ombudsman Service (FOS) if they have a complaint
• Clients are protected by the Financial Services Compensation Scheme (FSCS) if the broker fails

When Is a Broker Most Valuable?

While a broker can add value in many situations, they are particularly beneficial when:

• You have a commercial insurance need (property, liability, fleet, professional indemnity)
• Your risk is non-standard or complex (e.g., listed buildings, large portfolios, specialist trades)
• You have been declined by a direct insurer or comparison site
• You need advice on what cover you actually need
• You want someone to manage the claims process on your behalf
• You value a long-term relationship with someone who understands your business
• You want to ensure you are not underinsured or paying for cover you do not need

Next Steps

If you are looking for commercial insurance — whether for property, a business, or a fleet of vehicles — working with a specialist broker can save you time, provide peace of mind, and ensure you have the right cover in place.

Focus Insurance Services is an FCA-regulated broker specialising in commercial insurance forproperty owners, shops and trades, and fleet operators. Contact our team for a no-obligation discussion about your insurance needs.